Payment reason: mandate_cancelled

What it means

The payment mandate had been cancelled. The customer or their bank cancelled the Direct Debit before collection.

Where you see it

It arrives in the webhook payload:

{
  "data": {
    "object": {
      "id": "pay_7M3X1",
      "loan_id": "loan_2K9P4",
      "status": "failed",
      "failure_code": "mandate_cancelled"
    }
  }
}

How to handle it

Prompt the customer to set up a new mandate before the next due date.

Reconcile against live state, since webhooks are unordered and a later event may supersede this one.

In practice

Treat mandate_cancelled as one branch of your failure_code handling, not the whole story. For payments, the value tells you why a collection failed so you can respond proportionately — a technical failure needs no customer contact, whereas an insufficient-funds failure is a moment for supportive, hardship-aware messaging. Always confirm current state before acting, because a later success event (a retry that cleared) may already have superseded this failure, and webhook delivery is unordered.